New Jersey S 1930: Temporarily reinstates property tax exemption for previously exempt non-profit hospital properties; establishes "Non-Profit Hospital Property Tax Exemption Study Commission."

Bill Text

SENATE, No. 1930

STATE OF NEW JERSEY
220th LEGISLATURE

INTRODUCED MARCH 3, 2022

Sponsored by:
Senator NILSA I. CRUZ-PEREZ
District 5 (Camden and Gloucester)

SYNOPSIS
Temporarily reinstates property tax exemption for previously exempt non-
profit hospital properties; establishes “Non-Profit Hospital Property Tax
Exemption Study Commission.”

CURRENT VERSION OF TEXT
As introduced.

S1930 CRUZ-PEREZ
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AN ACT concerning the property tax status of non-profit hospitals. 1
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BE IT ENACTED by the Senate and General Assembly of the State 3
of New Jersey: 4
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1. If property used in the work of non-profit associations and 6
corporations organized exclusively for hospital purposes was 7
exempt or partially exempt from property taxation in tax year 2015, 8
that property shall be exempt from property taxation, to the same 9
extent, for tax years 2022 and 2023, notwithstanding any provisions 10
of R.S.54:4-3.6 to the contrary. Any litigation or other action to 11
subject such property to property taxation in tax years 2022 and 12
2023 is ultra vires and shall be withdrawn. 13
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2. a. There is established in, but not of, the Department of the 15
Treasury, an advisory commission to be known as the “Non-Profit 16
Hospital Property Tax Exemption Study Commission.” The 17
commission shall consist of nine members as follows: the State 18
Treasurer, who shall serve as chairperson of the commission, ex 19
officio; the Commissioners of Health and Community Affairs, ex 20
officio; the Secretary of Higher Education, ex officio; the Executive 21
Director of the New Jersey Health Care Facilities Financing 22
Authority, ex officio; and four members, appointed by the 23
Governor, one who shall be a member of the public with expertise 24
in the field of property taxes and recommended by the President of 25
the Senate, one who shall be a member of the public with expertise 26
in the field of property taxes and recommended by the Speaker of 27
the General Assembly, one who shall be a mayor of a municipality 28
within which a non-profit acute care hospital is located, and one 29
who shall be a representative of a non-profit acute care hospital or 30
property tax-exempt institution of higher education that operates or 31
is affiliated with a non-profit acute care hospital. Each member 32
may designate a representative to attend meetings of the 33
commission, and each designee may lawfully vote and otherwise act 34
on behalf of the member who designated that individual to serve as 35
a designee. Vacancies in the membership of the commission shall 36
be filled in the same manner as the original appointments. 37
b. The members shall be appointed within 60 days following 38
the effective date of P.L. , c. (C. ) (pending before the 39
Legislature as this bill). The commission shall organize as soon as 40
practicable after the appointment of its members and shall select a 41
secretary who need not be a member of the commission. The 42
presence of five members of the commission shall constitute a 43
quorum. The commission may conduct business without a quorum, 44
but may only vote on the issuance of the report required to be 45
submitted to the Governor and the Legislature pursuant to 46
subsection e. of this section, and on any recommendations, when a 47
quorum is present. 48

S1930 CRUZ-PEREZ
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c. All commission members shall serve without compensation, 1
but shall be eligible for reimbursement of necessary and reasonable 2
expenses incurred in the performance of their official duties within 3
the limits of funds appropriated or otherwise made available to the 4
commission for its purposes. 5
d. The commission may meet and hold public hearings at the 6
place or places it designates during the sessions or recesses of the 7
Legislature. 8
e. The commission shall study the current non-profit hospital 9
property tax exemption law, the modern operation of non-profit 10
hospitals, and how property tax exemption law should be updated in 11
light of modern non-profit hospital operations. The commission 12
shall issue a report addressing these issues to the Governor and the 13
Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-14
19.1), within one year after a quorum is appointed. The report shall 15
also include proposals on how the non-profit hospital property tax 16
exemption law should be updated, in light of modern non-profit 17
hospital operations, to provide a property tax exemption system that 18
is equitable to non-profit hospitals, municipalities, and taxpayers. 19
f. The commission shall expire 90 days after the issuance of 20
the report pursuant to subsection e. of this section. 21
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3. This act shall take effect immediately, except that section 1 23
of this bill shall be retroactive to assessments made as of October 1, 24
2021. 25
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STATEMENT 28
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This bill would reinstate property tax exemptions for non-profit 30
hospital properties for tax years 2022 and 2023 if such properties 31
were exempt from property taxation